Smart Home Security Global Market Report 2021: COVID-19 Growth And Change To 2030

Smart Home Security Global Market Report 2021: COVID-19 Growth And Change To 2030

  • September 2021 •
  • 175 pages •
  • Report ID: 6151586 •
  • Format: PDF
Major players in the smart home security market are ADT, Amazon, Honeywell International, Hangzhou Hikvision Digital Technology and Frontpoint Security Solutions.

The global smart home security market is expected to grow from $2.49 billion in 2020 to $2.7 billion in 2021 at a compound annual growth rate (CAGR) of 8.4%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $5.05 billion in 2025 at a CAGR of 16.9%.

The smart home security systems market consists of sales of smart home security devices and related services.Smart home security devices can be connected to Wi-Fi and accessed from anywhere using smartphones, smartwatch or voice.

The security devices produced includes devices such as smart alarms, smart cameras, smart locks, smart detectors, and others. This market does not include the installation of these devices and/or integration with the home set-up.

The smart home security market covered in this report is segmented by product into smart alarms, smart camera and monitoring system, smart locks and sensors, smart detectors. It is also segmented by application into independent homes, apartments, condominiums and by component into hardware, software, service.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The high installation costs of smart home security devices is restraining the growth of smart home security market.Being a relatively new technology, the setup cost for smart home security systems and the cost of other related expenses such as utilities, maintenance, and repair of the technology are high as well.

Cost of home security devices depends on the plan of the installation and size of the property.Installation of alarm systems and security cameras is more expensive when compared to other smart home security devices.

The basic smart home security system consisting of a burglar alarm, thermostat, outdoor lighting and a backdoor lock which can be controlled from remote device costs $2,500. And an advanced and high-end security and home automation systems cost $1.8 million. For instance, in 2019, the cost range for installation of basic security cameras is $663 - $2,019.

Smart home security systems manufacturers are increasingly integrating technologies with visual recognition based on AI (Artificial Intelligence) in security devices.AI is developing to a new stage where the security confirmation and authentication will be processed from face and visual recognition.

Home security systems such as consumer video cameras are integrated with AI technology with a new security validation framework to enhance safety and security through facial recognition, fingerprints and voice recognition.AI is proposed to be applied in smart alarms to create databases of all incoming alerts, which then could be analyzed to predict false alarms.

For instance, in 2019, SimCam Lab, a home security and automation system provider, presented the SimCam home security and home automation camera that utilizes AI "SimCam Alloy" for recognizing faces and monitoring pets, objects and others.

In July 2018, Amazon acquired Ring, a home security company for $1 billion.This acquisition would expand Amazon’s product portfolio and help capitalize on the rising demand globally for home security product.

Ring is a smart home automation and security systems company manufacturing home security devices, video doorbells, indoor & outdoor security cameras and other products. Ring was founded in 2012 and is headquartered in Santa Monica, California, US.

The smart home security market is driven by increasing crime rates across the globe.With the increasing crime rates, the consumers are increasingly focusing on safety and security systems especially in residential areas.

Smart home devices such as smart alarms, smart cameras, and smart lockers are being preferred by the households to be more safe and secure.According to home burglary statistics, 88% of all burglaries are residential in nature and there is 300% possibility of theft in homes without security systems.

According to a NCRB’s 2019 crime statistics, in 2019, 1,833 violent crimes were registered in the Himachal compared to 1,861 identified in 2018.

California’s Senate Bill 327, states the security regulations to be followed for all devices that connect to the internet including smart home security systems.The bill requires the manufacturer of such a device to be equipped with appropriate security features, designed to prevent unauthorized access, modification, or information disclosure.

The bill states that the information collected by the device should be appropriate and protected from unauthorized use.Also, if the device needs to be used outside the local area network, the user should generate a new password other than the one allotted to it by default, in order to prevent attack by hackers.

This bill is proposed to be effective from January 1, 2020, in California, US.

The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.